No More Tears: Insurance Coverage For The "WannaCry" Ransomware Attack

In Short

The Situation: At least 300,000 computers in more than 150 countries were affected by the WannaCry "ransomware" attack.

The Result: Beyond the ransom demand, other expenses, inconveniences, and complications for victimized companies are likely.

Looking Ahead: Commercial policyholders should review their insurance coverage provisions before another ransomware attack occurs.

This month's WannaCry "ransomware" attack—the first truly global incident of its kind—is believed to have affected at least 300,000 computers in over 150 countries, claiming among its victims many large corporations and public entities. A form of malicious software ("malware"), the WannaCry ransomware leverages exploits reportedly stolen from the NSA by the Shadow Brokers hacker collective. WannaCry (or "Wanna Decryptor") holds computers hostage by encrypting files until a ransom, demanded in the virtual currency Bitcoin, is paid for a decryption key to unlock them.